If you’re a homeowner thinking about making a move, you might be contemplating renting out your current house as a short-term rental property instead of selling it. Short-term rentals are typically offered to travelers as alternative housing options, investments which have gained popularity in the last few years, take Airbnb as the prime example.
While the idea of renting out your house as a short-term rental may be appealing, the reality of managing one can be daunting. Here are some challenges you may face if you choose to rent out your house instead of selling it.
- High turnover: Short-term rentals typically have a high turnover rate, meaning you’ll need to be prepared to clean and prepare your home for new guests frequently. This can be time-consuming and demanding, especially if you have a full-time job or other commitments.
- Damages: Short-term rental gusts are more likely to damage your property than long-term tenants. This is because they are not as invested in the property and may not take as good care of it. You’ll need to have a plan in place to deal with damages, such as requiring security deposits and having a good insurance policy.
- Guests: You’ll need to be prepared to deal with a variety of guests, from families with young children to groups of partying adults. This can be challenging if you have a strict schedule or if you’re not comfortable with strangers in your home.
- Regulations: Short-term rentals are often regulated by local governments. This can add to the administrative burden of being a short-term rental landlord. You’ll need to make sure you’re familiar with the regulations in your area and that you’re in compliance.
If you’re considering renting out your house as a short term rental, it’s important to weigh the pros and cons carefully. It can be a great way to make extra money, but it’s also important to be prepared for the challenges.
Here are some tips for making your short term-rental experience more manageable:
- Hire a property manager: This can help you with the day-to-day tasks of managing your short-term rental property, such as cleaning, booking guests, and dealing with repairs.
- Set clear rules and expectations: This will help to avoid any surprises or misunderstandings.
- Be responsive to guests needs: This will help to create a positive experience for your guests and encourage them to book again.
- Market your short-term rental effectively: This will help you avoid any fines or penalties.
- Stay up-to-date on regulations: This will help you to avoid any fines or penalties.
As you can see, short term renting can be tedious, costing you time and money. There are multiple factors to take into account went renting out your home. The right decision on whether to rent or sell ultimately depends on your goals and situation. Although renting can be a great option in certain situations, it poses more challenges than you might realize. If these responsibilities you will take on as a landlord pose no issue to you, short term rental can be a great way of generating income.
However, if you do not want to deal with the responsibilities of renting out a home, selling will be your best option. At the Michelle Thomas Team, we can provide the right resources to connect you with potential buyers, getting you the highest possible price with the best possible terms.